Aug. 28 (Bloomberg) -- International Business Machines
Corp. spent more than $1 billion over four years to develop a
new mainframe computer, betting it can keep up with businesses
shifting to cloud-based software and storage.

The Armonk, New York-based company is unveiling the
zEnterprise EC12 mainframe server today, the latest iteration of
a 48-year-old product. It’s the outcome of more than $1 billion
in research and development around the world to make the fastest
and most secure IBM mainframe yet, said Rod Adkins, senior vice
president of systems and technology.

Even as IBM shifts its focus to more profitable businesses
such as software, “the mainframe is central in that strategy,”
Adkins said in an interview. “When you think about how our
business model over time will continue to drive more from
software and services, you still have to have the foundation.”

Revenue in IBM’s System Z mainframe line fell 17 percent in
the first half from a year earlier, contributing to a decline in
the $8 billion systems and technology business, according to a
regulatory filing. The company won’t offer financial forecasts
for how the new product will perform, Adkins said.

Large enterprises such as banks, retailers and government
agencies buy mainframes to support their data systems. IBM’s
EC12, the first update since 2010, has 50 percent more capacity
than its predecessor and runs at 5.5 gigahertz, the fastest in
the industry, Adkins said. It’s also designed with built-in
security software and support for private cloud environments,
meaning a business can run thousands of systems on one
mainframe.